|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||2.0500 - 2.0500|
|52 Week Range||1.6800 - 4.4500|
|Beta (3Y Monthly)||0.16|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.05 (2.50%)|
|1y Target Est||N/A|
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.The man tasked with building a Goldman Sachs for Communist China was done playing nice.With hundreds of staff gathered to hear him speak at the Beijing Four Seasons hotel in January, Citic Securities Co. Chairman Zhang Youjun called out leaders of his firm’s international unit by name and questioned their ability to earn a decent return on capital. In a room full of investment bankers, it amounted to a stunning rebuke.For the executives at Citic’s CLSA unit who sat listening to Zhang in silence, it also marked the end of a tumultuous three-year relationship. Nearly all of them would quit over the next few weeks, kicking off a wave of more than 50 resignations that now threatens to upend China’s push to create a global investment-banking powerhouse.The story behind the exodus -- pieced together from interviews with almost a dozen current and former executives who asked not to be named so they could speak freely -- illustrates the difficulties China faces as it tries to project its financial might abroad. It involves bruised egos, lost bonuses and a culture clash that some say was inevitable after Citic Securities bought CLSA six years ago, putting the free-wheeling Hong Kong institution in the hands of a state-owned giant that ultimately answers to China’s Communist Party.“It was only a matter of time before this was going to happen,” said Paul Schulte, the Singapore-based founder of Schulte Research and former senior adviser to CCB International, the overseas unit of a state-owned Chinese bank. “I’m shocked it took this long.”Citic and CLSA declined to comment.It was an awkward marriage from the start. Whereas Citic was a product of China’s top-down brand of state capitalism, CLSA was founded by two former journalists in Hong Kong and was imbued with its hometown’s independent streak. The scrappy firm was best known for its incisive research, some of it critical of the Communist Party, and raucous annual forums that featured offbeat speakers like former boxer Mike Tyson.The 2013 takeover -- orchestrated by then-Chief Executive Officer Jonathan Slone and his Citic counterpart Wang Dongming -- hinged on the premise that Citic, China’s biggest securities firm, could leverage CLSA’s global client list to go head-to-head with international heavyweights like Goldman Sachs and Morgan Stanley.Read more: A QuickTake on China’s global financial ambitionsBut it never came to pass. For years after the acquisition, staff at Citic and CLSA mostly stuck to their pre-combination silos. And when Zhang stepped up efforts to integrate the businesses after taking the helm from Wang in 2016, tensions flared.Money and power were key sticking points. Many from the Citic camp, including Zhang, expressed frustration that members of CLSA’s old guard were overpaid relative to the income they produced. The international contingent, on the other hand, chafed at what they considered unnecessary meddling from Beijing and an unwillingness to consult with staff on big decisions.One senior executive who recently resigned from CLSA cited several aspects of post-takeover life at the firm that made him uncomfortable. Even though he harbored concerns about the direction of his unit and wanted to raise them with Zhang, colleagues from Citic advised him to steer clear of conversations with the boss that didn’t involve flattery. Gaining access was difficult in any case because Zhang tended to avoid dealing with non-Chinese staff.The executive decided to quit this year after he was forced to move to a different office, in spite of his repeated objections. The episode left him convinced that his autonomy under Zhang would be severely restricted.Frictions between the two camps were made worse by CLSA’s lackluster results in the face of China’s slowing economy and a difficult environment for capital markets globally.The situation was dire enough that some executives floated the prospect of selling the firm in 2016, though the idea was never seriously pursued and Citic publicly denied it at the time.CLSA cut costs instead, asking its 1,500 workers globally to take as many as 10 days of unpaid leave that September and shutting its U.S. equity-research operations in February 2017. The closure led to a writedown that reduced bonuses, further denting morale.Read more: Nomura has post-acquisition blues a decade after Lehman dealTensions came to a head late last year, when Zhang informed senior managers that bonuses would be cut again after CLSA lost nearly $31 million on bonds issued by a unit of embattled conglomerate CEFC China Energy Co.Slone opposed the decision, saying during a meeting in Beijing that CLSA staffers shouldn’t be affected because the CEFC deal had been driven by bankers from Citic. He warned that if everyone took a hit, it would “break the platform, because trust is fragile,” one of the executives present recalled.Zhang went ahead anyway, slashing the bonus pool by about 60% from a year earlier. CLSA’s top leaders, including Slone, got zero bonuses and were asked to take pay cuts.Around the same time, a five-year agreement giving CLSA’s managers operational independence from Citic expired, opening the door for Zhang to make sweeping changes. He moved Beijing-based employees into key back-office roles at CLSA, revamped the firm’s compensation system to bring it more in line with that of Citic and instituted a retirement age of 60 that forced out several staffers with decades of experience.The exodus of senior leaders began in February. Among the first to leave was Tang Zhenyi, who had served as chairman of CLSA and was seen as a peacemaker between factions in Beijing and Hong Kong before his falling out with Zhang. Slone resigned shortly thereafter and was followed by Nigel Beattie, CLSA’s chief operating officer; Xen Gladstone, who ran sales and trading; Edmund Bradley, head of research; and Christopher Wood, the firm’s top market strategist.The departures have since spread beyond upper management. At least 32 staff in Australia and Hong Kong quit to join Jefferies Financial Group Inc. in June, while about 10 members of CLSA’s China Reality Research group moved to Credit Suisse Group AG. A handful of others have departed from the U.K. and Japan.Zhang has struck an upbeat tone amid the upheaval. At a town-hall meeting in March, he acknowledged that some employees were disappointed by their 2018 bonuses but promised that the firm would deliver “first-in-class” pay if it meets certain targets. He also reiterated his commitment to international markets.“I truly believe it’s only a matter of time before CLSA contributes to Citic’s overseas expansion,” he said.The numbers point to an uphill battle. CLSA earned about $27 million in the first five months of this year, missing internal projections by 58%, according to figures seen by Bloomberg News. Goldman Sachs, by contrast, earned $2.25 billion in the first quarter.One of Zhang’s biggest challenges will be pushing CLSA beyond equities trading, a business that accounts for about half of revenue but is getting pummeled by falling transaction fees and reduced spending on research.While CLSA has had some success in fixed income -- mostly on China-related issuance -- progress in investment banking has been slow. The unit’s revenue this year through May was just $20.7 million, 55% below budget. Prospects for near-term growth look dim as Chinese capital controls and U.S. President Donald Trump’s trade war curb appetite for deals.Winning business outside China may prove particularly difficult now that the bulk of the firm’s international leaders have left. While Zhang tapped CLSA veteran Rick Gould as CEO, he filled most of the senior vacancies with people from Citic, who now account for five of the seven voting members on CLSA’s executive committee.The firm may eventually have to scale back its global ambitions to focus on building a China-centric investment bank, according to Sanjay Jain, a Singapore-based analyst at Aletheia Capital Ltd., one of Asia’s biggest independent investment-research firms.“CLSA can do well in China where it has the brand advantage and entrenched-player advantage,” Jain said. “Outside of that, it becomes challenging.”To contact the reporter on this story: Cathy Chan in Hong Kong at email@example.comTo contact the editors responsible for this story: Sam Mamudi at firstname.lastname@example.org, Michael PattersonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
China's securities regulator is considering scrapping profitability requirements in mergers and acquisitions (M&A;) for listed companies, as a way to facilitate secondary fundraising as the trade war weighs on Chinese growth and threatens to push the global economy into recession next year.Under consideration is an amendment to remove profitability requirements in M&A; deals involving listed companies, the China Securities Regulatory Commission (CSRC) said in a statement issued on its official website late Thursday.The regulator also invited the public to comment on the proposals unveiled Thursday.The proposed revisions also include easing fundraising restrictions for listed firms as a way to help boost cash flow, as well as support for back-door listings by hi-tech companies on the start-up board ChiNext."We believe, amid the continued loosening of policies, China's onshore M&A; market is to revive after cooling for more than two years. This will help direct financing by companies," analysts at Essence Securities said in a research note on Friday morning.The proposed changes are an institutional improvement that will lead to big benefits for the ChiNext market, Chinese brokerage Citic Securities said."The policy will be a strong sentiment boost to the ChiNext board in the short term," Citic analysts led by Qin Peijing wrote in a report Friday.Bolstered by the easing signal, the ChiNext Index, tracking leading technology companies in Shenzhen, rose 1.7 per cent to close at 1,523.8 on Friday.The CSRC tightened M&A; and restructuring rules in 2016, as a way to curb stock speculation following the equity market crash in the summer of 2015. After the policy revision, listed companies needed to pass comprehensive scrutiny to get regulatory approval for restructuring. These included requirements on total assets, net assets, revenue and profit.The authority also tightened approval for fundraising related to restructuring after 2016. As a result, the CSRC approved 267 secondary share placements in the year of 2018, sharply down from 813 in 2016 and 540 in 2017, according to financial data from Wind.With additional reporting by Yuijing Liu.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
May 8 (Reuters) - CITIC Securities Co Ltd : * SAYS APRIL NET PROFIT AT 526.4 MILLION YUAN ($77.72 million) Source text in Chinese: http://bit.ly/2YgCj9o Further company coverage: ($1 = 6.7731 Chinese yuan ...
SINGAPORE/BEIJING, April 29 (Reuters) - China's biggest brokerage, CITIC Securities Co Ltd , reported a 58 percent rise in first-quarter profit on Monday, as investment returns surged on the back of a rally in Chinese stock markets. CITIC said its net profit for January through March rose to 4.26 billion yuan ($633 million) from 2.69 billion yuan a year earlier.
April 29 (Reuters) - CITIC Securities Co Ltd: * CITIC SECURITIES CO -OBTAINED BUSINESS QUALIFICATION AS LEAD MARKET MAKER OF FUNDS LISTED ON SHANGHAI STOCK EXCHANGE WITH EFFECT FROM 26 APRIL 2019 Source ...
Asia-focused broker CLSA has appointed Rick Gould as chief executive, replacing company veteran Jonathan Slone who resigned in March amid differences over strategy with the broker's state-backed Chinese parent CITIC Securities (CITIC). Gould, currently chief executive of CLSA Americas, will take on his new role with immediate effect, the company said in a statement on Tuesday. "[Gould's] experience in building high-performing teams and in growing international businesses will be critical to accelerate our strategy to build a leading Chinese global investment bank," said CLSA Chairman Youjun Zhang in the statement.
April 9 (Reuters) - Citic Securities Co Ltd : * SAYS MARCH NET PROFIT AT 1.4 BILLION YUAN ($208.57 million) Source text in Chinese: https://bit.ly/2WXeX82 Further company coverage: ($1 = 6.7125 Chinese ...
April 8 (Reuters) - CITIC Securities Co Ltd: * GE XIAOBO TENDERED HIS RESIGNATION AS CHIEF FINANCIAL OFFICER * LI JIONG SHALL FORMALLY SERVE AS CHIEF FINANCIAL OFFICER Source text for Eikon: Further company ...
SINGAPORE/Hong Kong, March 21 (Reuters) - CITIC Securities Co Ltd, China's biggest brokerage by market value, reported an 18 percent fall in 2018 net profit on Thursday amid a weak domestic stock market. Its net profit for the year dropped to 9.4 billion yuan ($1.41 billion) from 11.4 billion yuan a year earlier, the company said in a stock exchange filing, and was in line with preliminary results released in January. China's 131 brokerages earned 66.6 billion yuan in net profit in 2018, 41 percent lower than they did a year earlier, while their revenue fell 14 percent, according to a Reuters calculation based on data from the Securities Association of China.
March 21 (Reuters) - Citic Securities Co Ltd : * SAYS 2018 NET PROFIT DOWN 17.9 PERCENT Y/Y Source text in Chinese: https://bit.ly/2TNVTMo Further company coverage: (Reporting by Hong Kong newsroom)
The chief executive of brokerage CLSA has resigned with more management change likely amid differences over strategy with Chinese parent CITIC Securities Co Ltd (CITIC), people with direct knowledge of the matter said. Jonathan Slone's departure comes just two weeks after CLSA Chairman Tang Zhenyi resigned from the Asia-focused broker, bought by state-backed CITIC in 2013.
CLSA Ltd. once earned that proud moniker from its former chief executive officer, Jonathan Slone, for its nonconformist research ideas. After a decade as CEO and 30 years at the brokerage, Slone this week became the latest and the most high-profile departure, closely following former Chairman Tang Zhenyi. You can rightly blame the broader challenges facing the research industry, or a culture clash between a largely Western-run house and its Chinese state-owned parent, Citic Securities Co. But ultimately the mass exodus from what was once one of Asia’s top brokerages comes down to its mission: How do you publish independent analysis when your ultimate owner is a government with a tightening grip on your message?
HONG KONG, March 20 (Reuters) - The chief executive of CLSA, the offshore platform of Chinese investment bank CITIC Securities Co Ltd, has resigned, a spokeswoman for the firm said on Wednesday. Jonathan ...
China's leading brokerage Citic Securities issued a rare "sell" rating on the Shanghai-listed shares of People's Insurance Group of China (PICC) citing frothy valuations, knocking the stock down and sending ripples across the broader market. The report also forecast that PICC's yuan-denominated A-shares could slump by more than half over the next 12 months, correcting after their value doubled in the past two weeks. "PICC's A-shares are evidently over-valued, and we give the stock 'sell' rating for the first time," Citic Securities said in the report, which was published late on Thursday.
On Thursday evening, Citic Securities Co. advised clients that People’s Insurance Co. (Group) of China Ltd., a $65 billion giant, could decline more than 50 percent over the next year. Shortly after Citic’s note, Huatai Securities Co. cut its rating on CSC Financial Co., a fellow brokerage. Separately, the state-owned China Securities Journal said in a front-page editorial that sell ratings must become “normal” in the future.
March 6 (Reuters) - Citic Securities Co Ltd : * SAYS FEB NET PROFIT AT 815.2 MILLION YUAN ($121.49 million) Source text in Chinese: https://bit.ly/2ExcedC Further company coverage: ($1 = 6.7101 Chinese ...
March 4 (Reuters) - CITIC Securities Co Ltd: * CHAN, CHARLES SHEUNG WAI RESIGNS AS INDEPENDENT NON-EXECUTIVE DIRECTOR Source text for Eikon: Further company coverage:
March 4 (Reuters) - CITIC Securities Co Ltd: * ANNOUNCES PROPOSED ACQUISITION OF ASSETS BY ISSUANCE OF SHARES * BOARD APPROVED UPDATED PROPOSAL IN RELATION TO ACQUISITION OF ASSETS BY ISSUANCE OF SHARES ...